Kratos Defense, which has a business building small military drones, may soon build its own jet engines for those aircraft.

The San Diego company announced Feb. 28 that it acquired a majority stake in Florida Turbine Technologies Inc. for $60 million. Kratos is paying $33 million in cash and $27 million in Kratos stock.

Kratos (Nasdaq: KTOS) also announced the formation of a new business unit focused on small, affordable, high-performance jet engines, to be led by executive Stacey Rock.

The deal gives Kratos an 80.1 percent stake in FTT. The San Diego business will have the option to buy the remaining 19.9 percent at an unspecified date in the future.

FTT is based in Jupiter, Florida. It is forecasting revenue of $45 million and adjusted EBITDA of $4.5 million for the 10 months from March 1 to Dec. 31. EBITDA stands for earnings before interest, taxes, depreciation and amortization.

Canaccord Genuity served as financial adviser to Kratos in connection with the transaction and Paul Hastings LLP served as legal counsel. Kratos’ full corporate name is Kratos Defense and Security Solutions Inc.